Bitcoin's Future Uncertain Amidst Market Volatility and Economic Shifts

Bloomberg Intelligence has warned that Bitcoin and crypto may face a long-term correction due to central banks keeping liquidity tight. The report noted the close relationship between crypto performance and global central bank liquidity levels, with risk assets declining as a result of banks withdrawing liquidity from the economy. The US Federal Reserve’s quantitative tightening coincided with the current all-time high for Bitcoin. Bloomberg Intelligence stated that it may be illogical to expect that stock market, crude oil, copper, and the Bloomberg Galaxy Crypto Index to sustain recent bounces with year-over-year measures of money supply and commercial bank deposits falling around 2%.